Reason Code RN2 – Credit Not Processed

A chargeback can be initiated up to 120 days—but not more than 540 days—of one of the following events:

• The date the transaction was processed
• The date on the credit receipt
• The date the merchandise was returned
• The date the services were cancelled
• The date of the reservation or event

However, the issuer must wait at least 10 days after the date of the reservation, the date the cancellation was made, or the date the merchandise was returned.

Also, the timeline may be extended if the issuer first submitted a retrieval request. If the retrieval request process finishes after the 120 day deadline, the issuer will have an additional 30 days to file a chargeback.

Examples of compelling evidence that you may submit in response to a chargeback with this reason code include:

• Proof that the cardholder authorized the transaction
• Proof the cardholder received the goods or services and the transaction was completed correctly
• Proof that you don’t need to issue a credit because the merchandise was not returned
• Proof that, in accordance with your policies, you issued in-store credit instead of crediting the card
• Proof that the cardholder agreed to a cash advance or cash at checkout and received the cash as requested
• Proof the cardholder did not cancel the reservation in accordance with your policies
• Proof that the cancellation number provided by the cardholder is invalid and the transaction was processed correctly
• Proof that the merchandise associated with the disputed transaction is being held by the cardholder’s customs agency, not yours
• Proof that the chargeback is invalid because it doesn’t adhere to Discover’s requirements
• Proof you have already refunded the transaction and credited the cardholder’s account

• Always respond to retrieval requests on time and with the required information. 
• Make sure your refund or cancellation policy clearly explains what the cardholder is expected to do, and make the policy easy to find.
• Fulfill all qualified cancellations or refund requests promptly so the credit will appear on the cardholder’s next statement.
• If you will be crediting the cardholder for a reduced amount, communicate the difference before processing the credit.
• Don’t accept delivery of returned merchandise if it doesn’t comply with your policy.
• Clearly explain if transactions are classified as “no refunds” or “in-store credit only” if you do not allow returns or have a limited return policy.
• Notify the customer after you have issued a credit.